FRANKFURT--Allianz Global Investors, one of two units in Allianz
SE's (ALV.XE) asset management business, said Tuesday it plans to
bundle all European units in one operating entity by the end of
2013 or early 2014 as it reorganizes its European business.
The move aims to make the business more efficient, streamline
the product range and cut costs, including reducing staffing
levels, James Dilworth, Chief Executive of Allianz Global Investors
Europe, said.
Allianz Global Investors became one of the two pillars in
Allianz's asset management operations, when Allianz restructured
the business in September 2011 with the goal of making two
brands--Allianz Global Investors and Pimco--separate entities and
move away from the family of boutiques model.
It plans to set up three centers in Europe in Frankfurt, London
and Paris, similar to the unit's setup in the U.S. and Asia, with
Frankfurt likely to be the European headquarters.
Mr. Dilworth said he couldn't give an estimate of total cost
savings expected from bundling the units and the unit hopes to
reduce total costs in Europe by 4% by cutting staff, confirming a
German media report earlier Tuesday. He said the Allianz unit is in
talks with European labor representatives over the planned
reduction.
Allianz Global Investors reported a cost-income ratio of about
75% for the first quarter, which is "several basis points too
high," but should be lowered by both cutting costs and increasing
revenues in Europe, the U.S. and Asia, Mr. Dilworth said.
The restructuring, which will start in Germany in the fourth
quarter, also aims to strengthen the brand Allianz Global Investors
to compete with local rivals, including AGF in France, RAS in Italy
and RCM in the U.K., and to boost retail investors' net inflows,
Mr. Dilworth said.
Write to Ulrike Dauer at ulrike.dauer@dowjones.com